6 Human Resource Planning

Learning Objectives

After completing this session, you will be able to:

  • define Human Resource Planning.
  • discuss the problems n HRP process.
  • describe the objectives and the importance of HRP

1.1

Source: “Human Resource Management” by Prof.Kalyan Chakravarti, Vinod Gupta School of Management, IIT KharagpurNPTEL is licensed under CC BY-NC-SA 4.0

According to Mondy et (1996) Human Resource Planning is a systematic analysis of HR needs in order to ensure that correct number of employees with the necessary skills are available when they are required. Human Resource Planning (HRP) may be defined as strategy for acquisition, utilization, improvement and preservation of the human resources of an enterprise. The objective is to provide right personnel for the right work and optimum utilization of the existing human resources. HRP exists as a part of the planning process of business.

This is the activity of the management which is aimed at co-ordinating requirements for and the availability of different types of employers. The major activities of HRP include: forecasting (future requirements), inventorying (present strength), anticipating (comparison of present and future requirements) and (necessary programme to meet future requirements).

Human Resource Planning involves gathering of information, making objectives, and making decisions to enable the organization achieve its objectives and goals. Surprisingly, this aspect of HR is one of the most neglected in the HRM field. When Human Resource Planning is applied properly in the field of Human Resource Management, it would assist to address the following questions:

  1. How many numbers of staff does the Organization have?
  2. What type of employees does the organization have?
  3. How should the Organization best utilize the available human resources?
  4. How can the organization keep its employees?

1.2 PROBLEMS IN HRP PROCESS

The main problems in the process of HRP are as follows:

a) Inaccuracy: Human Resource Planning is entirely dependent on the HR forecasting and supply, which cannot be a cent per cent accurate process.

b) Employee resistance: Employees and their unions feel that by Human Resource Planning, their workload increases so they resist the process.

c) Uncertainties: Labour absenteeism, labour turnover, seasonal employment, technological changes and market fluctuations are the uncertainties which Human Resource Planning process might have to face.

d) Inefficient information system: In Indian industries, HRIS is not much strong. In the absence of reliable data, it is not possible to develop effective Human Resource Planning.

e) Time and expense: Human Resource Planning is time consuming and expensive exercise, so industries avoid.

1.3 OBJECTIVES OF HUMAN RESOURCE PLANNING (HRP)

  1. To recruit and maintain the HR of requisite quantity and quality.
  2. To predict the employee turnover and make the arrangements for minimizing turnover and filing up of consequent vacancies.
  3. To meet the requirements of the programmes of expansion, diversification etc.
  4. To anticipate the impact of technology on work, existing employees and future human resource requirements.
  5. To progress the knowledge, skill, standards, ability and discipline etc.
  6. To appraise the surplus or shortage of human resources and take actions accordingly.
  7. To maintain pleasant industrial relations by maintaining optimum level and structure of human resource.
  8. To minimize imbalances caused due to non-availability of human resources of right kind, right number in right time and right place.
  9. To make the best use of its human resources; and
  10. To estimate the cost of human resources.

1.4 BENEFITS/IMPORTANCE OF HUMAN RESOURCE PLANNING

Human resource planning or manpower planning is necessary for ail organisations because of following reasons:

a) To meet up requirements of the organisation: To do work in the organisation, every organisation needs personnel of desired skill, knowledge and experience. This human resource requirement of organisation can be effectively fulfilled through proper human resource planning. It helps in defining the number of personnel as well as kind of personnel required to satisfy its needs. It ensures the reservoir of desired human resources as and when required.

b) Counterbalance insecurity and change: There must be proper utilisation of human and non-human resources in the organisation. Sometimes the organisation may have adequate non-human resources e.g. machines, materials and money but inadequate human resources as a result, manufacturing process/production cannot be started. Human resource planning helps to offset uncertainties and changes as far as possible and enables to ensure availability of human resources of the right kind, at right time and at right place.

c) It helps in checking labour imbalance: Human resource planning helps to anticipate shortages and/or surpluses of manpower in the organisation. The shortage of manpower as well as surplus of manpower is not good for the organisation. It proves very expensive for the organisation. In case of shortage of human resources, physical resources of the organisation cannot be properly utilized. In case of surplus of human resources, this resource may remain under-utilized It helps in counter balancing the problem of shortage and surplus employees very comfortably. Human resource planning helps in correcting this imbalance before it become unmanageable and expensive.

d) Right-sizing the human resource requirements of the organisation: In an existing organisation, there is a constant need for right-sizing the organisation. In the organisation, some posts may fall vacant as a result of retirement, accidents, resignations, promotions or death of employees. Consequently, there is constant need of replacing people. Human resource planning estimates future requirements of the organisation and helps to ensure that human resources of right kind, right number, in right time and right place.

e) To meet expansion and diversification needs of the organisation: It helps to execute future plans of the organisation regarding expansion, diversification and modernization. Through human resource planning it is ensured that employees in right number and of right kind are available when required to meet these needs of the organisation. It ensures that people of desired skills and knowledge are available to handle the challenging job requirements.

f) Training and Development of Employees: There is constant need of training and development of employees as a result of changing requirements of the organisation. It provides scope for advancement and development of employees through training and development etc. Thus, it helps in meeting the future needs of the organisation of highly skilled employees.

g) Fulfil Individual Needs of the Employees: It helps to satisfy the individual needs of the employees for promotions, transfer, salary encashment, better benefits etc.

h) Helps Formulation of Budgets: It helps in anticipating the cost of human resources e.g. salary and other benefits etc. It facilitates the formulation of human resource budget for various departments/divisions of the organisation. So, it may also help in, the formulation of suitable budgets in an organisation.

i) To Check Joblessness: In the exercise of right-sizing of employees by the organisation, some of the employees may become surplus. It means their services are no more required in the organisation. It tries to foresee the need for redundancy. It plans to check job loss or to provide for alternative employment in consultation with various concerned parties and authorities.

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